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If the Telo is between the router and the modem, QOS is done in the Telo.

If the Telo is after the router, QOS is done in the router and both QOS values in the Telo should be zero (disabled).
This is my preferred configuration and has been since 2009.

I recently changed Cipher Type from just "AES" to "TKIP and AES" on my router wifi setting. I had to also re-add wifi network in the Telo device setup. The jury is still out but the Telo wifi connection seems to be stable now.

D'Oh! Spoke too soon. Found Telo offline again within 1 hour of posting. Had to reboot router to get connection back.

Well, my Telo kept losing internet connection via wifi on daily basis (some stretches made it stay online longer, perhaps 3 days max). Rebooting Telo didn't help. Had to reboot the router to make the Telo blue. Everytime Telo lost connection, another wireless bridge lost connection as well so I assume it is my router to blame.

Finally had some time to restore factory default on the router yesterday. After rebooting with factory default, redefined DHCP reservation table. Reprovisioned QoS. Setup Access Control again with NTP server specification. Defined SSIDs again taking mostly router default.

802.11 Mode: Mixed 802.11n, 802.11g, 802.11b
Enabled Auto Channel Scan instead of choosing a specific channel
Channel Width: 20 MHz
Security Mode: WPA-Personal
WPA Mode: Auto (WPA or WPA2)
Cipher Type: TKIP and AES

It's been a day and Telo via wifi is still online. Will see how long this holds up.

5 days later, back to square 1. Probably need a new router

In case others have had issues with Telo losing internet connection using wifi adapter, wanted to share my experience.

When I had D-Link DIR-825, it used to work pretty good except I found my Telo via wifi offline often (had to reboot the router to resolve; rebooting the Telo itself didn't help). I thought maybe it was the Telo wifi adapter having issues until I found out whenever the issue arose, one of my wifi bridges lost internet connection as well. I tried to restore the router to factory settings a few times and reconfigure the router but that didn't help.

Recently, my D-Link router went belly up so I got another (Netgear WNDR3400 N600). The above issue related to Telo via wifi is gone. For the most part, I find WNDR3400 to be a great router (not gigabit and some other issues but I think all routers have issues; you just trade in a set of issues for another). Issues I found with Netgear WNDR3400 so far: /viewtopic.php?f=2&t=16028#p111925

Wxman, I am having exactly the same problems you describe. Red light upon disconnect and automatic reconnection every few minutes when on wireless, Hard wire connection was not a problem. Ooma suggested it was my ISP changing IP addresses. I have never heard of an ISP changing IP's ever few minutes. They also suggested in my Ooma internet settings to change connection type to Dynamic DHCP but that didn't work either. Still searching.......

Previously, while on DSL, with an ISP through Sympatico (Bell) connection a few years ago the big controversy was controlling bandwidth usage in Canada. This has now been outlawed and I believe finally stopped, but what they did to me was to send a disconnect packette to my router every couple of minutes. This packette was on the lower layer OSI communication protocol layer than the TCP/IP layer so I knew it was Sympatico had to be doing it.

After discovering these packette attacks I contacted my ISP who sort of admitted it was happening but it was my router that was shutting down and rebooting, so it was my equipment's fault. I contacted D-Link and asked about newer routers and if they had provision to handle this disconnect packette other than just rebooting the router. After a lot of question evasion the tech finally admitted they hadn't changed that response in ten years on new router models.

Well I changed over to cable when I moved and they choked bandwidth with a cleaner method for the last five years. They finally have this crap stopped in Canada now, mostly, but I can't help but wonder if you are experiencing the same thing.

Edit:Reading back this would be more in response to Ibmofo's problem and less to wxman (apologies).

Larry Lix, I have both Velcom and Sympatico in the house and I continue to get cyclical disconnect / reconnect with both services on wireless connections. My disconnections total approx 780 per day according to Ooma logs with no solution in sight. I have placed the Telo right next to the router before but does not help in terms of signal strength. Again, hardwire seems to be the only solution in the interim. None of my tablets, phones etc. experience this problem.

I caught this "disconnect" signal in the history records of my router. It took some research to figure out what it was as it was on the lower protocol level than the TCP/IP Internet packet structure. Sympatico was handing off my signal to my ISP and doing it to keep bandwidth down. I believe this has become outlawed for them to do this but I hear other places that it is still being down by some ISPs. The P2P excuse is being used to make it "OK" and the WoW gamers were complaining to the CRTC and initiated the outlawing this BS. You may be a victim of this, especially if they know you use P2P high bandwidth.

If you have connected your Telo to your router via WiFi, get it hardwired. I have had all kinds of media devices ad they never work great on WiFi where consistent streaming of data is required. Being so close may cause more problems with the signal too.
Radio front ends usually have automatic gain control and a close strong signal could cause the other devices in your house to get ignored due to severely high signal contrast or the opposite where the AGC takes time to tone down the strong signal and distorts the first data coming in.

If the Telo is between the router and the modem, QOS is done in the Telo.

If the Telo is after the router, QOS is done in the router and both QOS values in the Telo should be zero (disabled).
This is my preferred configuration and has been since 2009.

Anyone know if this also applies to an Apple Time Capsule (or Airport Extreme) which does not have QOS settings? I have my Telo after my Apple TC and I experience quite a bit of lag in conversations. Would it help to change the QOS upstream in the Telo even if it is after the router, since there is no option to do it in the router or the cable modem (25 MBS/ 2Mbs)?

Enabling QOS in the Telo with the Telo after a router has no effect. QOS in the Telo is used to prioritize traffic coming from the Telo's Home port. With the Telo after a router there should not be anything connected to the Home port.